THE Coega Development Corporation (CDC) announced that it had spent R1.5-billion on procurement from Small, Micro and Medium Enterprises (SMMEs) during the financial year ending March 2022.
Coega attributes this to the readiness of SMMEs to participate in construction and non-construction activities, and its facilitation of the participation process by ensuring SMME packages are identified prior the appointment of the main contractor.
Coega’s value engineering process identifies and sets aside packages that can be implemented by SMMEs, and this has promoted inclusive growth and development, and created almost 20 000 jobs, exceeding the organisation’s overall job targets by more than 50 percent and surpassing results achieved in 2018/19.
Denise van Huyssteen Chief Executive of the Nelson Mandela Bay Business Chamber says the Chamber welcomes Coega’s significant and targeted support of developing and growing SMMEs in Nelson Mandela Bay, as it is key to driving local economic activity and building a solid foundation for the success of SMMEs.
“The days of big businesses being the main source of job creation are over and going forward, jobs will be created within the SMME sector. The Chamber has prioritised SMME development as part of its strategic plan and looks forward to partnering with Coega and others to collectively further SMME growth opportunities,” says van Huyssteen.
Coega is the implementing agent of choice for many infrastructure development projects on behalf of several clients with a portfolio of more than R10.38-billion.
“For one of Coega’s mega projects, the Tshwane Automotive Special Economic Zone (TASEZ), R324.3-million was spent on procurement from SMMEs,” says Unathi Maholwana, CDC’s SMME Programme Manager.
According to Maholwana the TASEZ Project in Tshwane, represents the best case study in South Africa on how to fast-track the implementation of mega infrastructure projects.
More than R1.5-billion was spent in less than eight months, following strict governance protocols and creating sustainable value for stakeholders and clients.
Chuma Mbande, CDC’s Executive Manager of Business Development (Non-SEZ Services) says that SMMEs and communities surrounding the TASEZ project played an important role in ensuring the success of the project, and that Coega’s 23 years expertise in mega infrastructure development has deepened government capacity to not only implement infrastructure programmes, but to fast-track them within scope, quality, and costs.
Coega’s SMME initiatives include the development programme championed by the SMME Business Unit, which comprises training and mentorship of SMMEs on tendering for construction contracts, basic business concepts, applying health and safety standards, and business finance.
The SMME Mentorship Programme ensured that 80 percent of SMME-awarded contracts have been successfully completed, and 51 SMMEs have successfully improved their Construction Industry Development Board grading through Coega’s assistance and support during 2021.
As one of its main objectives, Coega continues to create an enabling environment for SMMEs through its SMME Database to spread the pool of SMMEs benefiting from its projects.
